On January I, $20$X$3,$ before acquiring Coyote, Acme Corporation acquired $100\%$ of Simbel Company for consideration transferred with a fair value of $$126,000.$ Acme is a U$.$S$.-$

based company headquartered in Fairfield, New Jersey, and Simbel is in Cairo, Egypt. Acme accounts for its investment in Simbel under the initial value method. Any excess

fair value of consideration transferred over book value is attributable to undervalued land on Simbel's books. Simbel had no retained earnings at the date of acquisition. T

following are the $204$ financial statements for the two operations. Information for Acme and for Simbel is in U$.$S$.$ dollars $($$$)$ and Egyptian pounds $($fE$),$ respectively.

During $203,$ the first year of joint operation, Simbel reported income of $E163,000$ earned evenly throughout the year. Simbel declared a dividend of $E30,000$ to Acme on June $1$ of that year. Simbel al

declared the $204$ dividend on June $1.$

On December $9,204,$ Simbel classified a $E10,000$ expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of $205.$

The exchange rates for $1E$ are as follows: S$7$ep Two

Acme and Simbel's U$.$S$.$ dollar accounts are then consolidated. Necessarg consolidation entries are

made in the consolidation $$orksheet$.$